IDEX REPORTS 9 PERCENT INCREASE IN NET INCOME
BEFORE AN EXTRAORDINARY CREDIT
NORTHBROOK, Ill., April 21 /PRNewswire/ -- IDEX Corporation (NYSE: IEX) today announced its results for the first quarter of 1992, which included a 6 percent increase in sales and a 9 percent increase in net income before an extraordinary credit. Sales in the three-month period amounted to $60.4 million as compared with $57.1 million in the same period last year. Net income before an extraordinary credit for utilization of net operating loss carryforwards amounted to $4.2 million in the first quarter of 1992, up from the $3.9 million recorded in the first quarter of 1991. Earnings per common share before the extraordinary credit in this year's first quarter were 34 cents. In last year's first quarter, IDEX earned 36 cents per common share before the extraordinary credit; however, there were 14 percent fewer shares outstanding. Net income after the extraordinary credit was $4.5 million in the first quarter of this year versus $4.2 million last year. As expected, utilization of net operating loss carryforwards declined from 3 cents per share in last year's first quarter to 2 cents this year. Earnings per share after the extraordinary credit were 36 cents per share this year versus 39 cents last year.
Donald N. Boyce, chairman and president of IDEX, said, "The results were very much in line with expectations. The company continued to report strong earnings in a troublesome economic environment because of its prominent market positions, the diversity of its markets, its significant international presence, and the continuing flow of new products." He added that while operating margins were slightly lower in this year's first quarter, they still represented a sizable 15.4 percent of sales. The slight decline in operating margins was largely attributable to somewhat lower capacity utilization in certain operations and the inclusion of Corken, Inc., acquired in May of 1991, in this year's results. A 22 percent reduction in interest expense more than offset the slight decline in income from operations and enabled the company to record an 9 percent increase in net income before the extraordinary credit. While Industrial Products Group sales were slightly lower in this year's first quarter, its margins were slightly better. Fluid Handling Group sales continued to rise, and represented approximately 63 percent of total sales in the first quarter.
Acquisitions.
The company completed the acquisition of the Pump Group of Devjo Industries of Canada on Feb. 20, for approximately $8.5 million, and the business is now being operated as a part of the Viking Pump business unit. The pending acquisition of Pulsafeeder, Inc., the manufacturer of specialty pumps for the process industries and water treatment markets, which was announced on April 7, is expected to close within the next few weeks. The Pulsafeeder business is being acquired for $66 million in cash and 75,000 shares of IDEX common stock. Pulsafeeder has annual sales in the $50 million range and is expected to add several cents in earnings per share in the first year of ownership. These acquisitions will further strengthen the company's position in the Fluid Handling Industry, which accounted for approximately 60 percent of IDEX revenues in 1991.
Outlook.
Boyce said that some signs of improving conditions were beginning to appear, particularly in the Fluid Handling businesses, and that the company remains optimistic that sales and earnings will gradually improve as the year progresses. He cautioned that significant growth in sales and earnings of the company's existing operations was not expected in the immediate future, but said that the company was well-positioned to benefit from the improving economy, and the new records in sales and earnings for the full year 1992 remained probable.
IDEX Corp. is a manufacturer of a wide array of proprietary, highly engineered products, including industrial pumps, stainless steel banding and clamping devices, sheet metal fabricating equipment and tooling, automatic lubrication systems, low horsepower compressors, and vibration control equipment. Its products are sold to a broad range of markets, the largest of which are the chemical processing, transportation equipment, food processing, pulp and paper, and oil refining industries.
IDEX CORP.
Condensed Statements of Consolidated Operations
(in thousands, except per share amounts -- unaudited)
First quarter ended March 31, 1992 1991
Net sales $60,384 $57,074
Cost of sales 37,527 35,670
Gross profit 22,857 21,404
S,G&A 13,553 11,942
Income from operations 9,304 9,462
Other income - net 39 176
Interest expense 2,593 3,333
Provision for income taxes 2,537 2,431
Inc. bef. extraord. credit 4,213 3,874
Extraordinary credit -
utilization of net
operating loss carryforward 263 296
Net income $4,476 $4,170
Earnings per common share:
Inc. bef. extraord. credit $0.34 $0.36
Extraordinary credit -
utilization of net operating
loss carryforward 0.02 0.03
Net income $0.36 $0.39
Wtd. avg. common shares
Outstanding 12,526 10,801
Condensed Consolidated Balance Sheets
(in thousands)
March 31, March 31,
1992 1991
(unaudited)
Assets
Current assets
Cash and cash equivalents $3,135 $1,486
Receivables - net 31,891 29,893
Inventories 45,706 42,390
Prepaid expenses and other 1,169 695
Total current assets 81,901 74,464
Property, plant and equipment - net 38,140 35,473
Intangible assets - net 29,857 27,807
Other assets 5,211 5,398
Total $155,109 $143,142
Liabilities and shareholders' equity
Current liabilities $39,720 $31,733
Long-term debt 68,841 65,788
Other noncurrent liabilities 4,978 8,509
Total liabilities 113,539 106,030
Shareholders' equity 41,570 37,112
Total $155,109 $143,142
-0- 4/21/92
/CONTACT: Wayne P. Sayatovic, VP-finance of IDEX, 708-498-7070 or Nick Farina or Audrey Lowe of Financial Relations Board, 312-266-7800, for IDEX/
(IEX) CO: IDEX Corp. ST: Illinois IN: SU: ERN

SH -- NY044 -- 0550 04/21/92 11:05 EDT

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